Summary
This document is a guide detailing the ERM risk and control assessment scales designed to aid in evaluating risks and their corresponding controls. It outlines various scales including the control effectiveness scale, residual risk impact scale, and residual risk likelihood scale, each employing a five-point rating system. The control effectiveness scale assesses how well existing controls mitigate risks, while the residual risk impact scale evaluates the potential effects of risks should they occur. Additionally, the residual risk likelihood scale determines the probability of risk occurrence over a specified period. The guide emphasizes the importance of considering past events and organizational dependencies when assessing risks. It also provides a framework for understanding the span of control within organizations and the factors influencing control effectiveness. The document serves as a comprehensive resource for organizations seeking to implement structured risk assessment methodologies.
